Currently libvirt-lxc is checking for /selinux or /sys/fs/selinux at build time, but when it is built in koji, it is being build on a RHEL6 box which has /selinux. When we install this on a F18 box, /selinux does not exist and /sys/fs/selinux should be used.
The library should be checking for the existance of /sys/fs/selinux and falling back to /selinux.
Libvirt attempts to figure this out at configure time, but fails with Fedora for the above mentioned reasons. We can however force the correct choice using --with-selinux-mount. The RPM spec file can be modified to pass the correct value per-distro release.